Digimarc (DMRC) 10-Q 30 Apr 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	Apr. 24, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Trading Symbol	DMRC
Entity Registrant Name	Digimarc CORP
Entity Central Index Key	0001438231
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity File Number	001-34108
Entity Tax Identification Number	26-2828185
Entity Address, Address Line One	9405 SW Gemini Drive
Entity Address, City or Town	Beaverton
Entity Address, State or Province	OR
Entity Address, Postal Zip Code	97008
City Area Code	503
Local Phone Number	469-4800
Entity Common Stock, Shares Outstanding		12,642,344
Title of 12(b) Security	Common Stock, $0.001 Par Value Per Share
Security Exchange Name	NASDAQ
Entity Incorporation, State or Country Code	OR
Document Transition Report	false
Document Quarterly Report	true
Entity Interactive Data Current	Yes

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 10,250	$ 11,213
Marketable securities	20,320	25,604
Trade accounts receivable, net	3,959	4,021
Other current assets	2,118	2,456
Total current assets	36,647	43,294
Property and equipment, net	3,539	3,650
Intangibles, net	6,629	6,670
Goodwill	1,114	1,114
Other assets	2,524	2,660
Total assets	50,453	57,388
Current liabilities:
Accounts payable and other accrued liabilities	2,349	2,272
Deferred revenue	3,015	3,172
Total current liabilities	5,364	5,444
Lease liability and other long-term liabilities	2,346	2,494
Total liabilities	7,710	7,938
Commitments and contingencies (Note 13)
Shareholders’ equity:
Preferred stock (par value $0.001 per share, 2,500 authorized, 10 shares issued and outstanding at March 31, 2020 and December 31, 2019)	50	50
Common stock (par value $0.001 per share, 50,000 authorized, 12,645 and 12,446 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively)	13	12
Additional paid-in capital	190,303	188,103
Accumulated deficit	(147,623)	(138,715)
Total shareholders’ equity	42,743	49,450
Total liabilities and shareholders’ equity	$ 50,453	$ 57,388

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Thousands	Mar. 31, 2020	Dec. 31, 2019
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	2,500	2,500
Preferred stock, shares issued	10	10
Preferred stock, shares outstanding	10	10
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000	50,000
Common stock, shares issued	12,645	12,446
Common stock, shares outstanding	12,645	12,446

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue:
Total revenue	$ 6,189	$ 5,660
Cost of revenue:
Total cost of revenue	2,198	2,134
Gross profit	3,991	3,526
Operating expenses:
Sales and marketing	5,246	4,950
Research, development and engineering	4,433	4,038
General and administrative	3,367	3,210
Total operating expenses	13,046	12,198
Operating loss	(9,055)	(8,672)
Other income, net	142	237
Loss before income taxes	(8,913)	(8,435)
Benefit (provision) for income taxes	5	(28)
Net loss	$ (8,908)	$ (8,463)
Earnings (loss) per common share:
Loss per common share — basic	$ (0.74)	$ (0.74)
Loss per common share — diluted	$ (0.74)	$ (0.74)
Weighted average common shares outstanding — basic	12,037	11,487
Weighted average common shares outstanding — diluted	12,037	11,487
Service [Member]
Revenue:
Total revenue	$ 3,738	$ 3,814
Cost of revenue:
Total cost of revenue	1,684	1,645
Subscription [Member]
Revenue:
Total revenue	2,451	1,846
Cost of revenue:
Total cost of revenue	$ 514	$ 489

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]
Balance at Dec. 31, 2018	$ 56,615	$ 50	$ 12	$ 162,428	$ (105,875)
Balance, shares at Dec. 31, 2018		10	11,891
Exercise of stock options	99	$ 0	$ 0	99	0
Exercise of stock options, shares		0	10
Issuance of restricted common stock	0	$ 0	$ 0	0	0
Issuance of restricted common stock, shares		0	255
Forfeiture of restricted common stock	0	$ 0	$ 0	0	0
Forfeiture of restricted common stock, shares		0	(1)
Purchase and retirement of common stock	(486)	$ 0	$ 0	(486)	0
Purchase and retirement of common stock, shares		0	(20)
Stock-based compensation	2,078	$ 0	$ 0	2,078	0
Net loss	(8,463)	0	0	0	(8,463)
Balance at Mar. 31, 2019	49,843	$ 50	$ 12	164,119	(114,338)
Balance, shares at Mar. 31, 2019		10	12,135
Balance at Dec. 31, 2019	49,450	$ 50	$ 12	188,103	(138,715)
Balance, shares at Dec. 31, 2019		10	12,446
Issuance of common stock, net of issuance costs	574	$ 0	$ 1	573	0
Issuance of common stock, net of issuance costs, shares		0	28
Exercise of stock options	$ 135	$ 0	$ 0	135	0
Exercise of stock options, shares	8	0	8
Issuance of restricted common stock	$ 0	$ 0	$ 0	0	0
Issuance of restricted common stock, shares		0	186
Forfeiture of restricted common stock	0	$ 0	$ 0	0	0
Forfeiture of restricted common stock, shares		0	0
Purchase and retirement of common stock	(738)	$ 0	$ 0	(738)	0
Purchase and retirement of common stock, shares		0	(23)
Stock-based compensation	2,230	$ 0	$ 0	2,230	0
Net loss	(8,908)	0	0	0	(8,908)
Balance at Mar. 31, 2020	$ 42,743	$ 50	$ 13	$ 190,303	$ (147,623)
Balance, shares at Mar. 31, 2020		10	12,645

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net loss	$ (8,908)	$ (8,463)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, amortization and write-off of property and equipment	374	357
Amortization and write-off of intangibles	201	180
Stock-based compensation	2,195	2,037
Changes in operating assets and liabilities:
Trade accounts receivable	62	161
Other current assets	338	74
Other assets	136	(33)
Accounts payable and other accrued liabilities	61	800
Deferred revenue	(146)	(393)
Lease liability and other long-term liabilities	(159)	(174)
Net cash used in operating activities	(5,846)	(5,454)
Cash flows from investing activities:
Purchase of property and equipment	(235)	(194)
Capitalized patent costs	(137)	(153)
Maturity of marketable securities	11,691	6,744
Purchase of marketable securities	(6,407)	(3,559)
Net cash provided by investing activities	4,912	2,838
Cash flows from financing activities:
Issuance of common stock, net of issuance costs	574	0
Exercise of stock options	135	99
Purchase of common stock	(738)	(486)
Net cash used in financing activities	(29)	(387)
Net decrease in cash and cash equivalents	(963)	(3,003)
Cash and cash equivalents at beginning of period	11,213	27,278
Cash and cash equivalents at end of period	10,250	24,275
Supplemental disclosure of cash flow information:
Cash received (paid) for income taxes, net	16	(3)
Supplemental schedule of non-cash activities:
Property and equipment and patent costs in accounts payable	16	2
Stock-based compensation capitalized to software and patent costs	35	41
Right of use assets obtained in exchange for lease obligations	$ 0	$ 2,709

Description of Business and Sig

Description of Business and Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Description of Business and Significant Accounting Policies	1. Description of Business and Significant Accounting Policies Description of Business Digimarc Corporation (“Digimarc” or the “Company”), an Oregon corporation, enables governments, banks, retailers, consumer brands, and other businesses around the world to automatically and reliably identify and interact with virtually any form of media. The Company has pioneered the Digimarc Platform, featuring three core functions for the identification, discovery and verification of digitally enhanced media. Digimarc provides objects with an indelible, imperceptible data carrier: Digimarc Barcode. Data in the carrier uniquely identifies the object. The Digimarc Platform also provides software for relevant devices to “discover” objects (i.e., decode data from that carrier) using Digimarc software, known as Digimarc Discover. Digimarc Verify, a suite of verification and quality control tools, assesses signal quality and validates data at critical stages of production when the Digimarc Barcode is applied to an object. Together, these core functions enable organizations, application developers, and other solution providers to build new features, functionality and additional value on the Digimarc Platform. Interim Consolidated Financial Statements Our significant accounting policies are detailed in “Note 1: Description of Business and Summary of Significant Accounting Policies” of our Annual Report on Form 10-K for the year ended December 31, 2019. Significant changes to our accounting policies as a result of adopting Accounting Standards Codification (“ASC”) 842, “ Leases The accompanying interim consolidated financial statements have been prepared from the Company’s records without audit and, in management’s opinion, include all adjustments (consisting of only normal recurring adjustments) necessary to fairly reflect the financial condition and the results of operations for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, which was filed with the SEC on February 27, 2020. The results of operations for the interim periods presented in these consolidated financial statements are not necessarily indicative of the results for the full year. Reclassifications Certain prior period amounts in the accompanying consolidated financial statements and notes thereto have been reclassified to conform to current period presentation, including the reclassification of revenue and expense accounts to better align with the presentation provided by our peers in the software industry. These reclassifications had no material effect on the results of operations or financial position for any period presented. Accounting Pronouncements Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “ Leases (ASC 842) Leases (ASC 840) Leases (ASC 842) Targeted Improvements Leases (ASC 842) Codification Improvements Accounting Pronouncements Issued But Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments In December 2019, the FASB issued ASU No. 2019-12, “ Income Taxes (ASC 740) Simplifying the Accounting for Income Taxes

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2020
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	2. Fair Value of Financial Instruments The estimated fair values of the Company’s financial instruments, which include cash equivalents, accounts receivable, accounts payable and other accrued liabilities, approximate their carrying values due to the short-term nature of these instruments. The Company’s marketable securities are classified as held-to-maturity and are reported at amortized cost, which approximates fair value. The Company’s fair value hierarchy for its cash equivalents and marketable securities was as follows: March 31, 2020 Level 1 Level 2 Level 3 Total Money market securities $ 5,016 $ — $ — $ 5,016 Commercial paper — 20,066 — 20,066 Corporate notes — 5,043 — 5,043 Total $ 5,016 $ 25,109 $ — $ 30,125 December 31, 2019 Level 1 Level 2 Level 3 Total Money market securities $ 746 $ — $ — $ 746 Commercial paper — 25,481 — 25,481 Corporate notes — 5,773 — 5,773 U.S. treasuries — 4,040 — 4,040 Total $ 746 $ 35,294 $ — $ 36,040 The fair value maturities of the Company’s cash equivalents and marketable securities as of March 31, 2020, are as follows: Maturities by Period Total Less 1 year 1-5 years 5 - 10 years More than 10 years Cash equivalents and marketable securities $ 30,125 $ 30,125 $ — $ — $ — The Company considers all highly liquid marketable securities with original maturities of 90 days or less at the date of acquisition to be cash equivalents. Cash equivalents include money market funds and commercial paper totaling $9,805 and $10,436 at March 31, 2020, and December 31, 2019, respectively. Cash equivalents are carried at either cost or amortized cost, depending on the type of security, which approximates fair value.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2020
Revenue Recognition [Abstract]
Revenue Recognition	3. Revenue Recognition The Company derives its revenue primarily from software development services and software subscriptions. Applicable revenue recognition criteria are considered separately for each performance obligation as follows: • Service revenue consists primarily of revenue earned from the performance of software development services. The majority of service contracts are structured as time and materials agreements. Revenue for services is recognized as the services are performed. Billing for services rendered generally occurs within one month after the services are provided. • Subscription revenue consists primarily of revenue earned from the sale of software products and to a lesser extent the licensing of intellectual property. The majority of subscription contracts are recurring, paid in advance and recognized over the term of the subscription, which is typically one to three years. Customer arrangements may contain multiple performance obligations such as software development services, software licenses, and maintenance and support fees. The Company accounts for individual products and services separately if they are distinct. To determine the transaction price, the Company considers the terms of the contract and the Company’s customary business practices. Some contracts may contain variable consideration. In those cases, the Company estimates the amount of variable consideration based on the sum of probability-weighted amounts in a range of possible consideration amounts. As part of this assessment, the Company will evaluate whether any of the variable consideration is constrained and if it is the Company will not include it in the transaction price. The consideration is allocated between distinct products and services based on their stand-alone selling prices. For items that are not sold separately, the Company estimates the standalone selling price based on reasonably available information, including market conditions, specific factors affecting the Company, and information about the customer. For distinct products and services, the Company typically recognizes the revenue associated with these performance obligations as they are delivered to the customer. Products and services that are not capable of being distinct are combined with other products or services until a distinct performance obligation is identified. The revenue associated with this performance obligation is typically recognized over the term of the contract as the customer simultaneously receives and consumes the products and services. All revenue recognized in the Consolidated Statements of Operations is considered to be revenue from contracts with customers. The following table provides information about disaggregated revenue by major market category in the Company’s single reporting segment: Three Three Months Months Ended Ended March 31, March 31, 2020 2019 Government Service $ 3,652 $ 3,634 Subscription 391 428 Total Government $ 4,043 $ 4,062 Retail Service $ 86 $ 180 Subscription 1,175 564 Total Retail $ 1,261 $ 744 Media Service $ — $ — Subscription 885 854 Total Media $ 885 $ 854 Total $ 6,189 $ 5,660 The Company has contract assets from contracts with customers that are classified as “trade accounts receivable.” Financial information about trade accounts receivable is included in Note 8. The Company has contract liabilities from contracts with customers that are classified as “deferred revenue.” Deferred revenue consists of billings in advance for services and subscriptions for which the performance obligation has not been satisfied. The following table provides information about contract liabilities from contracts with customers: March 31, December 31, 2020 2019 Deferred revenue, current $ 3,015 $ 3,172 Deferred revenue, long-term 70 59 Total $ 3,085 $ 3,231 The Company recognized $1,374 of revenue during the three months ended March 31, 2020 that was included in the contract liability balance as of December 31, 2019. The aggregate amount of transaction prices from contractual obligations that are unsatisfied or partially unsatisfied was $17,454 and $17,759 as of March 31, 2020 and December 31, 2019, respectively.

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Segment Information	4. Segment Information Geographic Information The Company derives its revenue from a single reporting segment: automatic identification solutions. Revenue is generated in this segment primarily through software development services and software subscriptions. The Company markets its products in the U.S. and in non-U.S. countries through its sales personnel and partners. Revenue by geographic area, based upon the “bill-to” location, was as follows: Three Three Months Months Ended Ended March 31, March 31, 2020 2019 Domestic $ 1,759 $ 1,317 International (1) 4,430 4,343 Total $ 6,189 $ 5,660 (1) Revenue from the Central Banks, consisting of a consortium of central banks around the world, is classified as international revenue. Reporting revenue by country for this customer is not practicable. Major Customers The following customers accounted for 10% or more of revenue: Three Three Months Months Ended Ended March 31, March 31, 2020 2019 Central Banks 64 % 68 % Walmart 12 % * * Less than 10% Long-Lived Assets by Geographical Area The Company’s long-lived assets are all domiciled in the U.S.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	5. Stock-Based Compensation Stock-based compensation includes expense charges for all stock-based awards to employees and directors. These awards include stock option grants and restricted stock awards. Stock-based compensation expense related to internal labor is capitalized to software and patent costs based on direct labor hours charged to capitalized software and patent costs. Determining Fair Value Stock Options Valuation and Amortization Method. The Company estimates the fair value of stock options on the date of grant (measurement date) using the Black-Scholes option valuation model. The Company amortizes the fair value of stock option awards on a straight-line basis over the vesting period of the award. Expected Life. The expected life of awards granted represents the period of time that they are expected to be outstanding. The Company determines the expected life based on historical experience with similar awards, giving consideration to the contractual terms and vesting schedules of the awards. Stock options granted generally vest over three years and have contractual terms of ten years. Expected Volatility. The Company estimates the volatility of its common stock at the date of grant based on the historical volatility of its common stock based on historical prices over the most recent period commensurate with the expected life of the award. Risk-Free Interest Rate. The Company determines the risk-free interest rate using current U.S. treasury yields for bonds with a maturity commensurate with the expected life of the award. Expected Dividend Yield. The expected dividend yield is derived by the Company’s expected annual dividend rate over the expected term divided by the fair value of the Company’s common stock at the grant date. There were no stock options granted during the three months ended March 31, 2020 and 2019 Restricted Stock The fair value of restricted stock awarded is based on the fair market value of the Company’s common stock on the date of the grant (measurement date) and is recognized over the vesting period of the award using the straight-line method. Restricted stock awards granted generally vest over three to four years for employee grants and one to three years for director grants. Stock-Based Compensation Three Three Months Months Ended Ended March 31, March 31, 2020 2019 Stock-based compensation: Cost of revenue $ 190 $ 182 Sales and marketing 479 519 Research, development and engineering 399 354 General and administrative 1,127 982 Stock-based compensation expense 2,195 2,037 Capitalized to software and patent costs 35 41 Total stock-based compensation $ 2,230 $ 2,078 The following table sets forth total unrecognized compensation cost related to non-vested stock-based awards granted under all equity compensation plans: As of As of March 31, December 31, 2020 2019 Total unrecognized compensation costs $ 17,641 $ 13,535 Total unrecognized compensation costs will be adjusted for any future forfeitures if and when they occur. The Company expects to recognize the total unrecognized compensation costs as of March 31, 2020, for stock options and restricted stock over weighted average periods through March 31, 2024, as follows: Stock Restricted Options Stock Weighted average period 1.03 years 1.57 years As of March 31, 2020, under all of the Company’s stock-based compensation plans, equity awards to purchase an additional 1,098 shares were authorized for future grants under the plans. The Company issues new shares upon option exercises. Stock Option Activity The Company issues new shares upon option exercises. The following table reconciles the outstanding balance of stock options: Weighted Weighted Average Average Aggregate Exercise Grant Date Intrinsic Three months ended March 31, 2020: Options Price Fair Value Value Outstanding at December 31, 2019 558 $ 31.22 $ 14.03 Granted — — — Exercised (8 ) 18.01 8.85 Forfeited or expired — — — Outstanding at March 31, 2020 550 $ 31.40 $ 14.10 $ — Exercisable at March 31, 2020 383 $ 29.95 $ — Unvested at March 31, 2020 167 $ 34.73 $ — The aggregate intrinsic value is based on the closing price of $13.05 per share of Digimarc common stock on March 31, 2020, which would have been received by the optionees had all of the options with exercise prices less than $13.05 per share been exercised on that date. Restricted Stock Activity The following table reconciles the unvested balance of restricted stock: Weighted Average Number of Grant Date Three months ended March 31, 2020: Shares Fair Value Unvested balance, December 31, 2019 435 $ 27.05 Granted 186 $ 34.05 Vested (55 ) $ 27.50 Forfeited — $ — Unvested balance, March 31, 2020 566 $ 29.31 The following table indicates the fair value of all restricted stock awards that vested: Three Three Months Months Ended Ended March 31, March 31, 2020 2019 Fair value of restricted stock awards vested $ 1,811 $ 1,240

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Shareholders' Equity	6 . Shareholders’ Equity In May 2019, the Company entered into an Equity Distribution Agreement, whereby the Company may sell from time to time through Wells Fargo Securities, LLC, as its sales agent, the Company’s common stock having an aggregate offering price of up to $30,000. For the three months ended March 31, 2020, the Company sold 28 shares at an average price of $21.92 under this Equity Distribution Agreement totaling $611 of cash proceeds, less $14 of commissions and $23 of stock issuance costs, for net cash proceeds of $574.

Earnings Per Common Share

Earnings Per Common Share	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Earnings Per Common Share	7 . Earnings Per Common Share The Company calculates basic and diluted earnings per common share in accordance with ASC 260 “ Earnings Per Share Basic earnings per common share excludes dilution and is calculated by dividing earnings to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing earnings to common shares by the weighted-average number of common shares, as adjusted for the potentially dilutive effect of stock options. The dilutive effect of stock options is determined using the treasury stock method. The following table reconciles earnings (loss) per common share: Three Three Months Months Ended Ended March 31, March 31, 2020 2019 Basic Earnings (Loss) per Common Share: Loss to common shares — basic $ (8,908 ) $ (8,463 ) Weighted average common shares outstanding — basic 12,037 11,487 Basic earnings (loss) per common share $ (0.74 ) $ (0.74 ) Diluted Earnings (Loss) per Common Share: Loss to common shares — diluted $ (8,908 ) $ (8,463 ) Weighted average common shares outstanding — diluted 12,037 11,487 Diluted earnings (loss) per common share $ (0.74 ) $ (0.74 ) The following table indicates the common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share calculations: Three Three Months Months Ended Ended March 31, March 31, 2020 2019 Anti-dilutive shares due to: Exercise prices higher than the average market price 550 475 Net loss — —

Trade Accounts Receivable

Trade Accounts Receivable	3 Months Ended
	Mar. 31, 2020
Receivables [Abstract]
Trade Accounts Receivable	8 . Trade Accounts Receivable Trade Accounts Receivable Trade accounts receivable are recorded at the invoiced amount. March 31, December 31, 2020 2019 Trade accounts receivable $ 3,984 $ 4,036 Allowance for doubtful accounts (25 ) (15 ) Trade accounts receivable, net $ 3,959 $ 4,021 Unpaid deferred revenue included in trade accounts receivable $ 909 $ 2,015 Allowance for Doubtful Accounts The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing trade accounts receivable. The Company determines the allowance based on historical write-off experience and current information. The Company reviews its allowance for doubtful accounts each reporting period. Account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Unpaid Deferred Revenue The unpaid deferred revenue that is included in trade accounts receivable is billed in accordance with the provisions of the contracts with the Company’s customers. Major Customers The following customers accounted for 10% or more of trade accounts receivable, net: March 31, December 31, 2020 2019 Central Banks 66 % 69 %

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2020
Property Plant And Equipment [Abstract]
Property and Equipment	9 . Property and Equipment Property and equipment are stated at cost. Repairs and maintenance are charged to expense when incurred. Depreciation on property and equipment is calculated using the straight-line method over the estimated useful lives of the assets, generally two to ten years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life or the lease term. March 31, December 31, 2020 2019 Office furniture and fixtures $ 1,650 $ 1,650 Software 4,530 4,379 Equipment 5,133 5,041 Leasehold improvements 1,721 1,721 Gross property and equipment 13,034 12,791 Less accumulated depreciation and amortization (9,495 ) (9,141 ) Property and equipment, net $ 3,539 $ 3,650

Intangibles

Intangibles	3 Months Ended
	Mar. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
Intangibles	10 . Intangibles Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. No impairment charges were recorded for the three months ended March 31, 2020 and 2019. Patent costs associated with the application and award of patents in the U.S. and various other countries are capitalized and amortized on a straight-line basis over the term of the patents as determined at the award date, which varies depending on the pendency period of the application, generally approximating 17 years. Amortization of intangible assets acquired is calculated using the straight-line method over the estimated useful lives of the assets. Estimated Life March 31, December 31, (years) 2020 2019 Capitalized patent costs 17-20 $ 9,341 $ 9,245 Intangible assets acquired: Purchased patents and intellectual property 3-10 250 250 Existing technology 5 1,560 1,560 Customer relationships 7 290 290 Backlog 2 760 760 Tradenames 3 290 290 Non-solicitation agreements 1 120 120 Gross intangible assets 12,611 12,515 Accumulated amortization (5,982 ) (5,845 ) Intangibles, net $ 6,629 $ 6,670

Leases

Leases	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Leases	11 . Leases The Company adopted ASC 842, “ Leases The Company leases its corporate office in Beaverton, Oregon. In July 2015, the Company entered into an amendment with the landlord of its corporate office to extend the lease term through March 2024, with remaining rent payments as of March 31, 2020, totaling $3,291, payable in monthly installments. The Company had leased office space in San Mateo, California, until March 31, 2020, when the lease expired. All of the Company’s leases are operating leases. The following table provides additional details of leases presented in the consolidated balance sheets: March 31, December 31, 2020 2019 Right of use assets $ 2,146 $ 2,263 Lease liabilities, current $ 624 $ 663 Lease liabilities, long-term $ 2,276 $ 2,435 Weighted-average remaining life 4.0 years 4.1 years Weighted-average discount rate 8.20 % 8.20 % The carrying value of the right of use assets is included in “Other assets” and the current and long-term lease liabilities are included in “Accounts payable and other accrued liabilities” and “Lease liability and other long-term liabilities,” respectively, in the consolidated balance sheets. Operating lease expense is included in cost of revenue and operating expenses in the consolidated statements of operations and in cash flows from operating activities on the consolidated statements of cash flows. The operating leases include variable lease costs which are not material and are included in operating lease costs. Additional details of the Company’s operating leases are presented in the following table: Three Three Months Months Year Ended Ended March 31, March 31, 2020 2019 Operating lease expense $ 263 $ 261 Cash paid for operating leases $ 327 $ 372 The table below reconciles the cash payment obligations for the first five years and total of the remaining years for the operating lease liability recorded in the consolidated balance sheet as of March 31, 2020: Cash Payment Year ending December 31: Obligations Remaining in 2020 $ 631 2021 838 2022 862 2023 867 2024 218 Thereafter — Total lease payments 3,416 Imputed interest (516 ) Total minimum lease payments $ 2,900

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	12 . Income Taxes The provision for income taxes for the three months ended March 31, 2020 and 2019 reflects current taxes, deferred taxes, and withholding taxes. The effective tax rate for each of the three months ended March 31, 2020 and 2019 was 0%. The valuation allowance against net deferred tax assets as of March 31, 2020, was $50,145, an increase of $2,336 from $47,809 as of December 31, 2019. Excess tax benefits of $255 and $191 were recognized in the provision for income taxes for the three months ended March 31, 2020 and 2019, respectively, which were offset by $255 and $191 of valuation allowance, respectively.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2020
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	13 . Commitments and Contingencies Certain of the Company’s contracts include an indemnification provision for claims from third parties relating to the Company’s intellectual property. Such indemnification provisions are accounted for in accordance with ASC 450 “ Contingencies The Company is subject from time to time to other legal proceedings and claims arising in the ordinary course of business. At this time, the Company does not believe that the resolution of any such matters will have a material adverse effect on its financial position, results of operations or cash flows.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	14 . Subsequent Events Loan under the Paycheck Protection Program On April 16, 2020, the Company entered into a loan with Stearns Bank, N.A. in an aggregate principal amount of $5,032 (the “Loan”), pursuant to the Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The Loan is evidenced by a promissory note (the “Note”) dated April 16, 2020, which is attached as Exhibit 10.1 to this Form 10-Q. The Loan matures two years from the disbursement date and bears interest at a rate of 1.000% per annum, with the first six months of interest deferred. Principal and interest are payable monthly commencing six months after the disbursement date and may be prepaid by the Company at any time prior to maturity with no prepayment penalties. Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of loans granted under the PPP. The Loan is subject to forgiveness to the extent proceeds are used for payroll costs, including payments required to continue group health care benefits, and certain rent, utility, and mortgage interest expenses (collectively, “Qualifying Expenses”), pursuant to the terms and limitations of the PPP. The Company intends to use a significant majority of the Loan amount for Qualifying Expenses. However, no assurance is provided that the Company will obtain forgiveness of the Loan in whole or in part.

Description of Business and S_2

Description of Business and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Description of Business	Description of Business Digimarc Corporation (“Digimarc” or the “Company”), an Oregon corporation, enables governments, banks, retailers, consumer brands, and other businesses around the world to automatically and reliably identify and interact with virtually any form of media. The Company has pioneered the Digimarc Platform, featuring three core functions for the identification, discovery and verification of digitally enhanced media. Digimarc provides objects with an indelible, imperceptible data carrier: Digimarc Barcode. Data in the carrier uniquely identifies the object. The Digimarc Platform also provides software for relevant devices to “discover” objects (i.e., decode data from that carrier) using Digimarc software, known as Digimarc Discover. Digimarc Verify, a suite of verification and quality control tools, assesses signal quality and validates data at critical stages of production when the Digimarc Barcode is applied to an object. Together, these core functions enable organizations, application developers, and other solution providers to build new features, functionality and additional value on the Digimarc Platform.
Interim Consolidated Financial Statements	Interim Consolidated Financial Statements Our significant accounting policies are detailed in “Note 1: Description of Business and Summary of Significant Accounting Policies” of our Annual Report on Form 10-K for the year ended December 31, 2019. Significant changes to our accounting policies as a result of adopting Accounting Standards Codification (“ASC”) 842, “ Leases The accompanying interim consolidated financial statements have been prepared from the Company’s records without audit and, in management’s opinion, include all adjustments (consisting of only normal recurring adjustments) necessary to fairly reflect the financial condition and the results of operations for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, which was filed with the SEC on February 27, 2020. The results of operations for the interim periods presented in these consolidated financial statements are not necessarily indicative of the results for the full year.
Reclassifications	Reclassifications Certain prior period amounts in the accompanying consolidated financial statements and notes thereto have been reclassified to conform to current period presentation, including the reclassification of revenue and expense accounts to better align with the presentation provided by our peers in the software industry. These reclassifications had no material effect on the results of operations or financial position for any period presented.
Accounting Pronouncements	Accounting Pronouncements Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “ Leases (ASC 842) Leases (ASC 840) Leases (ASC 842) Targeted Improvements Leases (ASC 842) Codification Improvements Accounting Pronouncements Issued But Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments In December 2019, the FASB issued ASU No. 2019-12, “ Income Taxes (ASC 740) Simplifying the Accounting for Income Taxes
Earnings Per Share	The Company calculates basic and diluted earnings per common share in accordance with ASC 260 “ Earnings Per Share

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2020
Fair Value Disclosures [Abstract]
Summary of Fair Value Hierarchy for Financial Assets	The Company’s fair value hierarchy for its cash equivalents and marketable securities was as follows: March 31, 2020 Level 1 Level 2 Level 3 Total Money market securities $ 5,016 $ — $ — $ 5,016 Commercial paper — 20,066 — 20,066 Corporate notes — 5,043 — 5,043 Total $ 5,016 $ 25,109 $ — $ 30,125 December 31, 2019 Level 1 Level 2 Level 3 Total Money market securities $ 746 $ — $ — $ 746 Commercial paper — 25,481 — 25,481 Corporate notes — 5,773 — 5,773 U.S. treasuries — 4,040 — 4,040 Total $ 746 $ 35,294 $ — $ 36,040
Summary of Fair Value Maturities for Financial Asset	The fair value maturities of the Company’s cash equivalents and marketable securities as of March 31, 2020, are as follows: Maturities by Period Total Less 1 year 1-5 years 5 - 10 years More than 10 years Cash equivalents and marketable securities $ 30,125 $ 30,125 $ — $ — $ —

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2020
Revenue Recognition [Abstract]
Schedule of Disaggregated Revenue By Major Product Line in Single Reporting Segment	The following table provides information about disaggregated revenue by major market category in the Company’s single reporting segment: Three Three Months Months Ended Ended March 31, March 31, 2020 2019 Government Service $ 3,652 $ 3,634 Subscription 391 428 Total Government $ 4,043 $ 4,062 Retail Service $ 86 $ 180 Subscription 1,175 564 Total Retail $ 1,261 $ 744 Media Service $ — $ — Subscription 885 854 Total Media $ 885 $ 854 Total $ 6,189 $ 5,660
Schedule of Contract Liabilities from Contracts with Customers	The following table provides information about contract liabilities from contracts with customers: March 31, December 31, 2020 2019 Deferred revenue, current $ 3,015 $ 3,172 Deferred revenue, long-term 70 59 Total $ 3,085 $ 3,231

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Geographical Segment Revenue	Revenue by geographic area, based upon the “bill-to” location, was as follows: Three Three Months Months Ended Ended March 31, March 31, 2020 2019 Domestic $ 1,759 $ 1,317 International (1) 4,430 4,343 Total $ 6,189 $ 5,660 (1) Revenue from the Central Banks, consisting of a consortium of central banks around the world, is classified as international revenue. Reporting revenue by country for this customer is not practicable.
Customers Accounted for 10% or More of Revenue	The following customers accounted for 10% or more of revenue: Three Three Months Months Ended Ended March 31, March 31, 2020 2019 Central Banks 64 % 68 % Walmart 12 % * * Less than 10%

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Allocation of Stock-Based Compensation	Stock-Based Compensation Three Three Months Months Ended Ended March 31, March 31, 2020 2019 Stock-based compensation: Cost of revenue $ 190 $ 182 Sales and marketing 479 519 Research, development and engineering 399 354 General and administrative 1,127 982 Stock-based compensation expense 2,195 2,037 Capitalized to software and patent costs 35 41 Total stock-based compensation $ 2,230 $ 2,078
Unrecognized Compensation Cost Related to Non-Vested Stock-Based Awards Granted	The following table sets forth total unrecognized compensation cost related to non-vested stock-based awards granted under all equity compensation plans: As of As of March 31, December 31, 2020 2019 Total unrecognized compensation costs $ 17,641 $ 13,535
Weighted Average Period for Recognition of Unrecognized Compensation Cost for Stock Options and Restricted Stock	The Company expects to recognize the total unrecognized compensation costs as of March 31, 2020, for stock options and restricted stock over weighted average periods through March 31, 2024, as follows: Stock Restricted Options Stock Weighted average period 1.03 years 1.57 years
Reconciliation of Outstanding Balance of Stock Options	The Company issues new shares upon option exercises. The following table reconciles the outstanding balance of stock options: Weighted Weighted Average Average Aggregate Exercise Grant Date Intrinsic Three months ended March 31, 2020: Options Price Fair Value Value Outstanding at December 31, 2019 558 $ 31.22 $ 14.03 Granted — — — Exercised (8 ) 18.01 8.85 Forfeited or expired — — — Outstanding at March 31, 2020 550 $ 31.40 $ 14.10 $ — Exercisable at March 31, 2020 383 $ 29.95 $ — Unvested at March 31, 2020 167 $ 34.73 $ —
Reconciliation of Unvested Balance of Restricted Stock	The following table reconciles the unvested balance of restricted stock: Weighted Average Number of Grant Date Three months ended March 31, 2020: Shares Fair Value Unvested balance, December 31, 2019 435 $ 27.05 Granted 186 $ 34.05 Vested (55 ) $ 27.50 Forfeited — $ — Unvested balance, March 31, 2020 566 $ 29.31
Fair Value of Restricted Stock Awards Vested	The following table indicates the fair value of all restricted stock awards that vested: Three Three Months Months Ended Ended March 31, March 31, 2020 2019 Fair value of restricted stock awards vested $ 1,811 $ 1,240

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Summary of Reconciliation of Earnings (Loss) Per Common Share	The following table reconciles earnings (loss) per common share: Three Three Months Months Ended Ended March 31, March 31, 2020 2019 Basic Earnings (Loss) per Common Share: Loss to common shares — basic $ (8,908 ) $ (8,463 ) Weighted average common shares outstanding — basic 12,037 11,487 Basic earnings (loss) per common share $ (0.74 ) $ (0.74 ) Diluted Earnings (Loss) per Common Share: Loss to common shares — diluted $ (8,908 ) $ (8,463 ) Weighted average common shares outstanding — diluted 12,037 11,487 Diluted earnings (loss) per common share $ (0.74 ) $ (0.74 )
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following table indicates the common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share calculations: Three Three Months Months Ended Ended March 31, March 31, 2020 2019 Anti-dilutive shares due to: Exercise prices higher than the average market price 550 475 Net loss — —

Trade Accounts Receivable (Tabl

Trade Accounts Receivable (Tables)	3 Months Ended
	Mar. 31, 2020
Receivables [Abstract]
Summary of Trade Accounts Receivable	Trade accounts receivable are recorded at the invoiced amount. March 31, December 31, 2020 2019 Trade accounts receivable $ 3,984 $ 4,036 Allowance for doubtful accounts (25 ) (15 ) Trade accounts receivable, net $ 3,959 $ 4,021 Unpaid deferred revenue included in trade accounts receivable $ 909 $ 2,015
Customers Accounted for 10% or More of Trade Accounts Receivable, Net	The following customers accounted for 10% or more of trade accounts receivable, net: March 31, December 31, 2020 2019 Central Banks 66 % 69 %

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2020
Property Plant And Equipment [Abstract]
Depreciation and Amortization on Property and Equipment Using the Straight-Line Method	Depreciation on property and equipment is calculated using the straight-line method over the estimated useful lives of the assets, generally two to ten years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life or the lease term. March 31, December 31, 2020 2019 Office furniture and fixtures $ 1,650 $ 1,650 Software 4,530 4,379 Equipment 5,133 5,041 Leasehold improvements 1,721 1,721 Gross property and equipment 13,034 12,791 Less accumulated depreciation and amortization (9,495 ) (9,141 ) Property and equipment, net $ 3,539 $ 3,650

Intangibles (Tables)

Intangibles (Tables)	3 Months Ended
	Mar. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization of Intangible Assets Acquired	Amortization of intangible assets acquired is calculated using the straight-line method over the estimated useful lives of the assets. Estimated Life March 31, December 31, (years) 2020 2019 Capitalized patent costs 17-20 $ 9,341 $ 9,245 Intangible assets acquired: Purchased patents and intellectual property 3-10 250 250 Existing technology 5 1,560 1,560 Customer relationships 7 290 290 Backlog 2 760 760 Tradenames 3 290 290 Non-solicitation agreements 1 120 120 Gross intangible assets 12,611 12,515 Accumulated amortization (5,982 ) (5,845 ) Intangibles, net $ 6,629 $ 6,670

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Additional Details of Leases Presented in Balance Sheets	All of the Company’s leases are operating leases. The following table provides additional details of leases presented in the consolidated balance sheets: March 31, December 31, 2020 2019 Right of use assets $ 2,146 $ 2,263 Lease liabilities, current $ 624 $ 663 Lease liabilities, long-term $ 2,276 $ 2,435 Weighted-average remaining life 4.0 years 4.1 years Weighted-average discount rate 8.20 % 8.20 %
Additional Details of Operating Lease Expense	Operating lease expense is included in cost of revenue and operating expenses in the consolidated statements of operations and in cash flows from operating activities on the consolidated statements of cash flows. The operating leases include variable lease costs which are not material and are included in operating lease costs. Additional details of the Company’s operating leases are presented in the following table: Three Three Months Months Year Ended Ended March 31, March 31, 2020 2019 Operating lease expense $ 263 $ 261 Cash paid for operating leases $ 327 $ 372
Reconciliation of Undiscounted Cash Payment Obligations of Operating Lease Liability	The table below reconciles the cash payment obligations for the first five years and total of the remaining years for the operating lease liability recorded in the consolidated balance sheet as of March 31, 2020: Cash Payment Year ending December 31: Obligations Remaining in 2020 $ 631 2021 838 2022 862 2023 867 2024 218 Thereafter — Total lease payments 3,416 Imputed interest (516 ) Total minimum lease payments $ 2,900

Description of Business and S_3

Description of Business and Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Jan. 01, 2019
Accounting Policies [Abstract]
Estimated right of use assets	$ 2,146	$ 2,263	$ 2,709
Estimated lease liabilities	$ 2,900		3,792
Deferred rent liability			$ 1,083

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Summary of Fair Value Hierarchy for Financial Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 30,125
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	30,125	$ 36,040
Fair Value, Measurements, Recurring [Member] | Money Market Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	5,016	746
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	20,066	25,481
Fair Value, Measurements, Recurring [Member] | Corporate Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	5,043	5,773
Fair Value, Measurements, Recurring [Member] | U.S. Treasuries [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total		4,040
Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	5,016	746
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Money Market Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	5,016	746
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasuries [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total		0
Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	25,109	35,294
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Money Market Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	20,066	25,481
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	5,043	5,773
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasuries [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total		4,040
Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Money Market Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 0	0
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasuries [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total		$ 0

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Summary of Fair Value Maturities for Financial Asset (Detail) $ in Thousands	Mar. 31, 2020USD ($)
Fair Value Disclosures [Abstract]
Cash equivalents and marketable securities, Maturities by Period, Total	$ 30,125
Cash equivalents and marketable securities, Maturities by Period, Less than 1 year	30,125
Cash equivalents and marketable securities, Maturities by Period, 1-5 years	0
Cash equivalents and marketable securities, Maturities by Period, 5-10 years	0
Cash equivalents and marketable securities, Maturities by Period, More than 10 years	$ 0

Fair Value of Financial Instr_5

Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Highly liquid marketable securities with original maturities	90 days or less
Cash equivalents include commercial paper and money market funds	$ 9,805	$ 10,436

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Revenue Recognition [Abstract]
Period of revenue from services	1 month
Subscription revenue term, minimum	1 year
Subscription revenue term, maximum	3 years
Deferred revenue, revenue recognized	$ 1,374
Aggregate amount of transaction price from contractual obligations	$ 17,454	$ 17,759

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Disaggregated Revenue By Major Product Line in Single Reporting Segment (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Disaggregation Of Revenue [Line Items]
Total	$ 6,189	$ 5,660
Service [Member]
Disaggregation Of Revenue [Line Items]
Total	3,738	3,814
Subscription [Member]
Disaggregation Of Revenue [Line Items]
Total	2,451	1,846
Government [Member]
Disaggregation Of Revenue [Line Items]
Total	4,043	4,062
Government [Member] | Service [Member]
Disaggregation Of Revenue [Line Items]
Total	3,652	3,634
Government [Member] | Subscription [Member]
Disaggregation Of Revenue [Line Items]
Total	391	428
Retail [Member]
Disaggregation Of Revenue [Line Items]
Total	1,261	744
Retail [Member] | Service [Member]
Disaggregation Of Revenue [Line Items]
Total	86	180
Retail [Member] | Subscription [Member]
Disaggregation Of Revenue [Line Items]
Total	1,175	564
Media [Member]
Disaggregation Of Revenue [Line Items]
Total	885	854
Media [Member] | Service [Member]
Disaggregation Of Revenue [Line Items]
Total	0	0
Media [Member] | Subscription [Member]
Disaggregation Of Revenue [Line Items]
Total	$ 885	$ 854

Revenue Recognition - Schedul_2

Revenue Recognition - Schedule of Contract Liabilities from Contracts with Customers (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Revenue Recognition [Abstract]
Deferred revenue, current	$ 3,015	$ 3,172
Deferred revenue, long-term	70	59
Total	$ 3,085	$ 3,231

Segment Information - Additiona

Segment Information - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2020Segment
Revenue, Major Customer [Line Items]
Number of reporting segment	1
Customer Concentration Risk [Member] | Minimum [Member] | Sales [Member]
Revenue, Major Customer [Line Items]
Percentage of revenue from major customers	10.00%

Segment Information - Geographi

Segment Information - Geographical Segment Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 6,189	$ 5,660
Domestic [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	1,759	1,317
International [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 4,430	$ 4,343

Segment Information - Customers

Segment Information - Customers Accounted for 10% or More of Revenue (Detail) - Customer Concentration Risk [Member] - Sales [Member]	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Central Banks [Member]
Revenue, Major Customer [Line Items]
Entity wide revenue major customers percentage	64.00%	68.00%
Walmart [Member]
Revenue, Major Customer [Line Items]
Entity wide revenue major customers percentage	12.00%

Segment Information - Custome_2

Segment Information - Customers Accounted for 10% or More of Revenue (Parenthetical) (Detail) - Customer Concentration Risk [Member] - Sales [Member]	3 Months Ended
	Mar. 31, 2020
Minimum [Member]
Revenue, Major Customer [Line Items]
Entity wide revenue major customers percentage	10.00%
Walmart [Member]
Revenue, Major Customer [Line Items]
Entity wide revenue major customers percentage	12.00%
Walmart [Member] | Maximum [Member]
Revenue, Major Customer [Line Items]
Entity wide revenue major customers percentage	10.00%

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - $ / shares shares in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted	0	0
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for stock options and restricted stock	3 years
Contractual terms	10 years
Stock-based compensation plans, number of additional shares authorized for future grants	1,098
Closing price per share of Digimarc common stock	$ 13.05
Restricted Stock [Member] | Minimum [Member] | Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for stock options and restricted stock	3 years
Restricted Stock [Member] | Minimum [Member] | Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for stock options and restricted stock	1 year
Restricted Stock [Member] | Maximum [Member] | Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for stock options and restricted stock	4 years
Restricted Stock [Member] | Maximum [Member] | Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for stock options and restricted stock	3 years

Stock-Based Compensation - Allo

Stock-Based Compensation - Allocation of Stock-Based Compensation (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 2,195	$ 2,037
Capitalized to software and patent costs	35	41
Total stock-based compensation	2,230	2,078
Cost of Revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	190	182
Sales and Marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	479	519
Research, Development and Engineering [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	399	354
General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 1,127	$ 982

Stock-Based Compensation - Unre

Stock-Based Compensation - Unrecognized Compensation Cost Related to Non-Vested Stock-Based Awards Granted (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Total unrecognized compensation costs	$ 17,641	$ 13,535

Stock-Based Compensation - Weig

Stock-Based Compensation - Weighted Average Period for Recognition of Unrecognized Compensation Cost for Stock Options and Restricted Stock (Detail)	3 Months Ended
	Mar. 31, 2020
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period	1 year 10 days
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period	1 year 6 months 25 days

Stock-Based Compensation - Reco

Stock-Based Compensation - Reconciliation of Outstanding Balance of Stock Options (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Options, Outstanding at beginning	558
Options, Granted	0	0
Options, Exercised	(8)
Options, Forfeited or expired	0
Options, Outstanding at ending	550
Options, Exercisable at ending	383
Options, Unvested at ending	167
Weighted Average Exercise Price, Outstanding at beginning	$ 31.22
Weighted Average Exercise Price, Granted	0
Weighted Average Exercise Price, Exercised	18.01
Weighted Average Exercise Price, Forfeited or expired	0
Weighted Average Exercise Price, Outstanding at ending	31.40
Weighted Average Exercise Price, Exercisable at ending	29.95
Weighted Average Exercise Price, Unvested at ending	34.73
Weighted Average Grant Date Fair Value, Outstanding at beginning	14.03
Weighted Average Grant Date Fair Value, Granted	0
Weighted Average Grant Date Fair Value, Exercised	8.85
Weighted Average Grant Date Fair Value, Forfeited or expired	0
Weighted Average Grant Date Fair Value, Outstanding at ending	$ 14.10
Aggregate Intrinsic Value, Outstanding	$ 0
Aggregate Intrinsic Value, Exercisable	0
Aggregate Intrinsic Value, Unvested	$ 0

Stock-Based Compensation - Re_2

Stock-Based Compensation - Reconciliation of Unvested Balance of Restricted Stock (Detail) - Restricted Stock [Member] shares in Thousands	3 Months Ended
	Mar. 31, 2020$ / sharesshares
Number of Shares
Unvested, beginning balance | shares	435
Granted | shares	186
Vested | shares	(55)
Forfeited | shares	0
Unvested, ending balance | shares	566
Weighted Average Grant Date Fair Value
Unvested, beginning balance | $ / shares	$ 27.05
Granted | $ / shares	34.05
Vested | $ / shares	27.50
Forfeited | $ / shares	0
Unvested, ending balance | $ / shares	$ 29.31

Stock-Based Compensation - Fair

Stock-Based Compensation - Fair Value of Restricted Stock Awards Vested (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of restricted stock awards vested	$ 1,811	$ 1,240

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - Common Stock [Member] - USD ($) $ / shares in Units, shares in Thousands	3 Months Ended
	Mar. 31, 2020	May 31, 2019
Issuance of common stock	28
Common stock price per share	$ 21.92
Cash proceeds from sale of common stock	$ 611,000
Sale of common stock, sales agent commissions	14,000
Stock issuance cost	23,000
Net cash proceeds from sale of common stock	$ 574,000
Maximum [Member]
Aggregate offering price of common stock		$ 30,000,000

Earnings Per Common Share - Sum

Earnings Per Common Share - Summary of Reconciliation of Earnings (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Basic Earnings (Loss) per Common Share:
Loss to common shares — basic	$ (8,908)	$ (8,463)
Weighted average common shares outstanding — basic	12,037	11,487
Basic earnings (loss) per common share	$ (0.74)	$ (0.74)
Diluted Earnings (Loss) per Common Share:
Loss to common shares — diluted	$ (8,908)	$ (8,463)
Weighted average common shares outstanding — diluted	12,037	11,487
Diluted earnings (loss) per common share	$ (0.74)	$ (0.74)

Earnings Per Common Share - Sch

Earnings Per Common Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Common stock equivalents related to stock options that were anti-dilutive and excluded from diluted net income per share	0	0
Higher Than Average Market Price [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Common stock equivalents related to stock options that were anti-dilutive and excluded from diluted net income per share	550	475

Trade Accounts Receivable - Sum

Trade Accounts Receivable - Summary of Trade Accounts Receivable (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Accounts Receivable Net Current [Abstract]
Trade accounts receivable	$ 3,984	$ 4,036
Allowance for doubtful accounts	(25)	(15)
Trade accounts receivable, net	3,959	4,021
Unpaid deferred revenue included in trade accounts receivable	$ 909	$ 2,015

Trade Accounts Receivable - Add

Trade Accounts Receivable - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2020
Accounts Receivable [Member] | Minimum [Member] | Credit Concentration Risk [Member]
Concentration Risk [Line Items]
Percentage of trade accounts receivable of major customers	10.00%

Trade Accounts Receivable - Cus

Trade Accounts Receivable - Customers Accounted for 10% or More of Trade Accounts Receivable, Net (Detail)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Central Banks [Member]
Concentration Risk [Line Items]
Percentage of trade accounts receivable of major customers	66.00%	69.00%

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2020
Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of the assets	2 years
Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of the assets	10 years

Property and Equipment - Deprec

Property and Equipment - Depreciation and Amortization on Property and Equipment Using the Straight-Line Method (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Property Plant And Equipment [Abstract]
Office furniture and fixtures	$ 1,650	$ 1,650
Software	4,530	4,379
Equipment	5,133	5,041
Leasehold improvements	1,721	1,721
Gross property and equipment	13,034	12,791
Less accumulated depreciation and amortization	(9,495)	(9,141)
Property and equipment, net	$ 3,539	$ 3,650

Intangibles - Additional Inform

Intangibles - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Impairment charges on intangible	$ 0	$ 0
Capitalized Patent Costs [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	17 years

Intangibles - Amortization of I

Intangibles - Amortization of Intangible Assets Acquired (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Capitalized patent costs	$ 9,341	$ 9,245
Intangible assets acquired:
Gross intangible assets	12,611	12,515
Accumulated amortization	(5,982)	(5,845)
Intangibles, net	$ 6,629	6,670
Capitalized Patent Costs [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	17 years
Capitalized Patent Costs [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	20 years
Purchased Patents and Intellectual Property [Member]
Intangible assets acquired:
Intangible assets amount	$ 250	250
Purchased Patents and Intellectual Property [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	3 years
Purchased Patents and Intellectual Property [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	10 years
Existing Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	5 years
Intangible assets acquired:
Intangible assets amount	$ 1,560	1,560
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	7 years
Intangible assets acquired:
Intangible assets amount	$ 290	290
Backlog [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	2 years
Intangible assets acquired:
Intangible assets amount	$ 760	760
Tradenames [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	3 years
Intangible assets acquired:
Intangible assets amount	$ 290	290
Non-solicitation Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	1 year
Intangible assets acquired:
Intangible assets amount	$ 120	$ 120

Leases - Additional Information

Leases - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Jul. 31, 2015	Mar. 31, 2020
Lessee Operating Lease [Line Items]
Remaining rent payments		$ 3,416
Beaverton, Oregon [Member]
Lessee Operating Lease [Line Items]
Existence of option to extend		true
Option to extend operating lease		extend the lease term through March 2024
Option to extend operating lease, month and year	2024-03
Remaining rent payments		$ 3,291
San Mateo, California [Member]
Lessee Operating Lease [Line Items]
Operating lease term, month and year		2020-03

Leases - Additional Details of

Leases - Additional Details of Leases Presented in Balance Sheets (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Jan. 01, 2019
Leases [Abstract]
Right of use assets	$ 2,146	$ 2,263	$ 2,709
Lease liabilities, current	624	663
Lease liabilities, long-term	$ 2,276	$ 2,435
Weighted-average remaining life	4 years	4 years 1 month 6 days
Weighted-average discount rate	8.20%	8.20%

Leases - Additional Details o_2

Leases - Additional Details of Operating Lease Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Leases [Abstract]
Operating lease expense	$ 263	$ 261
Cash paid for operating leases	$ 327	$ 372

Leases - Reconciliation of Undi

Leases - Reconciliation of Undiscounted Cash Payment Obligations of Operating Lease Liability (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Jan. 01, 2019
Leases [Abstract]
Remaining in 2020	$ 631
2021	838
2022	862
2023	867
2024	218
Thereafter	0
Total lease payments	3,416
Imputed interest	(516)
Total minimum lease payments	$ 2,900	$ 3,792

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Income Tax Disclosure [Line Items]
Deferred tax assets, valuation allowance	$ 50,145		$ 47,809
Effective tax rate	0.00%	0.00%
Change in valuation allowance	$ 2,336
ASU No. 2016-09 [Member]
Income Tax Disclosure [Line Items]
Excess tax benefits recognized in the provision for income taxes offset by valuation allowance	$ 255	$ 191

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - PPP [Member] - Subsequent Event [Member] $ in Thousands	1 Months Ended
	Apr. 16, 2020USD ($)
Subsequent Event [Line Items]
Aggregate principal loan amount	$ 5,032
Term of loan	2 years
Interest rate on loan per annum	1.00%
Loan, payment terms	Principal and interest are payable monthly commencing six months after the disbursement date and may be prepaid by the Company at any time prior to maturity with no prepayment penalties.